Being a Foodservice distributor can feel like a never-ending game of whack-a-mole? One day, it’s a surprise stockout. The next, it’s a last-minute order change that throws off your entire delivery schedule. And let’s not even talk about the struggle of chasing down late payments.
The reality is, distribution is full of moving parts, and when one thing goes wrong, it can have a ripple effect across your entire operation. But here’s the good news—many of these challenges have practical, tech-driven solutions that can make your life a lot easier. With the right tools, especially those powered by e-commerce, you can tackle these pain points head-on and keep your business running smoothly.
Let’s break down some of the most common issues and how to fix them.
1. Order Management Chaos
The Problem: You’re drowning in phone calls, emails, and text messages from customers placing orders in a dozen different ways. Mistakes happen, orders get lost, and your team spends too much time just sorting things out.
Order errors may seem small at first but the costs can quickly add up. The Data Warehouse Institute found that data entry errors in the supply chain, data procurement, and other vital areas can cost organizations upwards of $600 billion annually. Human errors are one of the biggest contributors to order errors, and this can happen at any stage of the ordering process when done manually.
The Solution: Shift to a digital ordering platform. When customers can place orders online through a streamlined system, you eliminate miscommunication, reduce errors, and free up your team to focus on more important tasks. Plus, customers love the convenience—just a few clicks, and their order is in.
2. Inventory Surprises (The Bad Kind)
The Problem: The situation is the same for inventory management. You think you have plenty of stock—until you don’t. Suddenly, a top-selling product is out, and you’ve got frustrated customers on your hands. Stock-outs are happening more often than you think - the rate has doubled to 35% since the pandemic. Stock-outs can lead to walkouts as well - about 21%-43% of customers will turn to another supplier in the case of an item being out of stock. Now that’s just revenue walking out the door.
The Solution: Real-time inventory tracking. If you’re still relying on manual counts and spreadsheets, it’s time for an upgrade. Digital inventory management tools can give you instant visibility into stock levels, helping you prevent shortages (or overstocking). Some even integrate with ordering systems, so customers only see what’s available.
3. Pricing That’s All Over the Place
The Problem: Different customers have different pricing structures, but keeping track of who gets what discount is a nightmare. Even implementing dynamic and customer-specific pricing can be difficult when you are doing it manually and you’re managing a large catalog with multiple customers.
The Solution: An automated pricing system. With an e-commerce platform designed for distributors, you can assign customer-specific pricing, pricing rules, bulk discounts, and promotions—without the risk of human error. This ensures pricing is consistent and transparent, reducing customer disputes.
4. Payment Headaches
The Problem: Chasing down payments is time-consuming and frustrating. Some customers pay late, some forget entirely, and keeping track of who owes what is a hassle. Manual processing can cost between $15-40 per invoice, which adds up quickly with high volumes.
The Solution: Offer flexible digital payment options. E-commerce tools allow customers to pay online via credit card, ACH, or automated billing. Even better? Set up reminders so customers get notified when payments are due, reducing the need for follow-ups. Automation boosts productivity, profitability, and competitiveness in the marketplace. Industry analysts report that automated AR can deliver ROI in as little as two months.
5. Lack of Customer Insights
The Problem: You know what customers are ordering, but not why. Without data, predicting trends, personalizing service, or adjusting inventory to match demand is hard. Moreover, you may even be missing out on an opportunity to serve your customers better.
Take the case of US Foods, a pioneer in launching e-commerce for its customers; they realized that 72% of their customers found food costs to be their most pressing challenge, and the big broadliner rolled out a digital food cost calculator. They use all sorts of customer information from feedback to comments to improve their e-commerce offering which keeps customers engaged on the platform.
The Solution: Use analytics to your advantage. E-commerce platforms can track purchasing patterns, seasonal trends, and customer preferences. You have a vast amount of data that can be used to suggest relevant products, run targeted promotions, and make smarter inventory decisions.
The Bottom Line: E-Commerce is a Game-Changer
The distribution industry is changing, and those who embrace digital tools are staying ahead of the competition. Whether it’s streamlining order management, improving inventory accuracy, or making payments easier, e-commerce solutions can solve many of the biggest headaches in distribution.
So if you’re tired of putting out fires every day, it might be time to rethink your approach. The right digital tools can help you work smarter—not harder.